Too often, people think that having a last will and testament in place is enough to make the transfer of assets easy when a family member dies. But a will guarantees that the distribution of a loved one’s estate will enter probate court, a long, public, and stressful process.
Probate court is when the state requires a family to go through a court-supervised process of validating the last will and testament, identifying an executor, counting estate assets, notifying any parties the estate is in debt to, paying those debts, filing appropriate taxes, locating beneficiaries and then finally distributing estate assets.
If that list already looks long and daunting, the actual experience of going through probate court is even more so with the attendant legal documents, paperwork, and waiting periods that come with it. Probate can become exponentially more complicated by any surprises that pop up along the way such as previously unknown debts or the costs incurred by the court process. Even in a relatively straightforward case, it can take a year or more to be finished with probate court.
So, how do you avoid this headache? A healthy dose of planning ahead of time and having more than just a will in place can remove the need to spend a year in court in order to distribute estate assets after a death in the family. That’s exactly the strategy we at Family Estate Planning Law Group have been providing to families for decades.
An essential part of our estate planning process for clients is setting up a living trust. We like to refer to that trust as a bucket: Within it are all the assets—money, property, items of value, and so on—that you have included in your trust to be distributed after death. This bucket comes with instructions on how those assets are meant to be distributed, to whom, and who should oversee the process of that distribution (namely, the trustee).
It helps to always think about there being two hands holding the bucket, with each trustee having one hand on the handle. For example, when you first set up your trust, you and your spouse will each have a hand on the bucket. If one or both of you dies, then there is a plan in place for a new trustee or trustees to put their hand(s) on the bucket and keep it supported.
This ensures that someone always has the right to access any assets aligned with the trust, which is important for avoiding probate. One of the main reasons probate exists is to ensure there is a standardized process for accounting for all aspects of a deceased’s estate (that is, their debts, assets, inheritors, and tax burdens) and to whom they are transferred. But a carefully planned trust takes care of all of that because the assets within it are administered by the trustees and not personally owned by you, even though in the case of a living trust, you, as the Trustee, are still in control of the assets during your life.
Maintaining a trust is one of the best ways to completely avoid probate court and remove the burden of going through the probate process from your surviving family members. After all, you can’t execute your own will after you’re gone. But maintaining a trust isn’t a one-time action—even with a thorough trust in place, your assets are dynamic and will require occasional but regular realignment with the goals and instructions of your estate plan and trust. Things can fall through the cracks, such as new properties or investments, and can land your loved ones in probate court if these assets are not properly aligned with your trust.
With Family Estate Planning Law Group’s ongoing client care program, the point is to provide clarity and peace of mind to everyone in the family, from the people setting up their estate plan to their children and other family members who will be beneficiaries and trustees. We strive to be transparent with the steps in the estate planning process, to involve all family members through the Family Care MeetingTM to ensure everyone understands the goals and functions of the plan and trust, and to regularly reassess the estate plan and realign assets with the trust so that nothing goes unaddressed, causing frustration for the family.
Our intelligent and collaborative estate planning helps you avoid probate but also keeps in mind a larger, holistic viewpoint. Estate planning to this degree—to avoid probate court and have a trust in place to protect and distribute your assets—sounds involved, and it is. But it doesn’t have to be complex, confusing, or downright stressful for you or your family. We aim to make every element of planning your estate and establishing a living trust as simple as possible for you, taking care of the legal complexities and working with you to focus on the practical points of ensuring your family easily gets what they are entitled to after you’re gone.
To learn more about our collaborative approach to estate planning, ongoing client care program, or other estate planning tips, visit our website and schedule your complimentary consultation today!